Lake Las Vegas Resort Rising From Its Grave

The economy meltdown that struck back in 2008 had some devastating effects on real estate markets across the globe. Some developments, such as the Lake Las Vegas Resort, were unfortunately rocked harder than most, and were ultimately forced to close-down due to a lack of funding.

Located twenty miles southeast of Las Vegas, business for this multi-use project was going fine during its opening, as features such as a 320-acre man-made lake, an artificial waterfall, casino, hotel, and residences for sale attracted thousands of investors and homebuyers.

However, home values began to plunge, sales quickly stalled, and foreclosures soon began to rise. This in turn had a domino effect on the other businesses within the development as well – a Ritz-Carlton hotel, and even the development’s only casino, were closed in 2010. Moreover, the company which owned most of the undeveloped land was left with no choice but to file for bankruptcy.
Nevertheless, all of this happened several years ago, and today things seem to be getting a lot brighter for Lake Las Vegas. Foreclosure rates have greatly decreased, existing houses are being sold at lower prices, new residences for sale are being constructed, and the development’s casino plus hotel have new operators.

In addition to this, hedge-fund manager John Paulson of the Paulson’s Real Estate Private Equity Group acquired 540 acres of developable land just recently, of which he paid $17 million for. Andrew Stegen, current general manager for Ravella, the hotel which replaced the Ritz-Carlton hotel back in 2011, believes that the development went from repulsive to attractive in a short span of time.
“Two years ago, no one would have touched anything to do with Lake Las Vegas,” said Stegen. He also adds that the Paulson firm’s purchase of land “is a huge boost of confidence” that’ll attract more investors and consumers to the project.

Although the development is indeed showing signs of improvement, experts are refraining from using terms such as “booming” to describe its potential and current situation as it’s simply too early to tell for sure.

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